Posted by: Thomas F. McKeon, CFA on April 16, 2019
In this issue we take a look back at the market rally of 1Q-2019, peer ahead into the fog, explain the working relationship we have with our custodians, extol the virtues of institutional-quality portfolios, encourage you to connect on social media, introduce the CFA Wealth Initiative and update our Clothier Springs Capital Partners.
1Q-2019 Review & Outlook
Well, that was a little better. The first quarter of 2019 was a mirror image of 4Q-2019, with equity markets powering upwards and reversing the losses of the previous quarter. It was not an "all-clear" signal. More on the total return benefits of dividend-focused strategies.
A Word About Our Custodians
As a Registered Investment Advisor Clothier Springs Capital Management is not permitted to hold (custody) clients assets (cash or securities). Only banks and brokers are authorized to do that. Custody is a business that requires extensive regulation and compliance regimes and also requires far greater capital. Our focus is on advising clients, managing portfolios and helping them meet their own unique goals and objectives.
We’re All Institutional Investors Now… or Should Be
The investment tools and techniques exist for investors large and small to have optimally efficient, risk-limited, ultra-low cost portfolios, as institutions have had for decades.
Clothier Springs Capital Partners Update:
Clothier Springs Capital Partners LLC ended its first 12 months of operations on February 28, 2019. At that time we had made eleven investments in real estate equity, real estate date and merchant cash advance debt. The current yield for the partnership was 10.1% annual and the eventual expected return for the partnership was almost 17.0% annual, which comes from income distributions, and capital gains.
CFA Wealth Promotion
The CFA Institute—our professional organization—is commencing a multi-year initiative to raise the profile of CFA Charterholders—like yours truly— among High New Worth Investors. From their recent publication “Does Your Wealth Manager Measure Up?…”
CFA Institute is embarking on a long-term journey to raise awareness of CFA® charterholders among high-net-worth investors (HNWIs). To spread the word, we’re launching a strategic, multi-year marketing campaign across the United States and Canada, backed by a planned spend of US$50 million over a four-year period. With shifts in wealth concentration and a growing number of CFA charterholders working in private wealth management, it’s time to make it clear that CFA charterholders are the premier choice for HNWIs.